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# The $12 million vegetable cartel: How suppliers fixed prices charged to ALDI
- URL: https://www.benchmarkanalytics.com.au/the-12-million-vegetable-cartel-how-suppliers-fixed-prices-charged-to-aldi/
- Published: 2026-10-31T20:00:00.000Z
- Updated: 2026-10-31T20:00:00.000Z
- Description: Perfection Fresh has admitted fixing vegetable prices supplied to ALDI on 11 occasions. The ACCC is seeking a $12 million penalty, while proceedings against other suppliers continue.
- Author: Nick Hossack
- Tags: Competition, ACCC, Vegetable Prices

Australia's second-largest fresh vegetable supplier has admitted illegally fixing prices charged to ALDI, exposing a competition problem further up the grocery supply chain than the supermarkets themselves.

On 26 October, the Australian Competition and Consumer Commission announced that **Perfection Fresh Australia had admitted cartel conduct on 11 occasions between 2019 and 2020**.

The conduct involved broccoli, cauliflower and iceberg lettuce supplied to ALDI stores in New South Wales.

Perfection Fresh and the ACCC will jointly ask the Federal Court to impose a **$12 million penalty**. The Court has not yet approved that amount.

### How did the cartel operate?

ALDI purchases some fresh vegetables through an *agile pricing* system, requiring suppliers to submit new prices every week.

Ordinarily, competing suppliers should independently decide what prices to quote. That competition gives ALDI opportunities to negotiate lower wholesale costs.

Instead, Perfection Fresh has admitted participating in arrangements fixing prices offered to ALDI.

The wider ACCC case alleges that competing suppliers made or attempted **28 price-fixing arrangements** between 2018 and 2024, and submitted prices consistent with those arrangements on **48 occasions**.

Those wider allegations cover six vegetables across NSW, Victoria and Queensland. They have not all been established in court.

### Who else is involved?

The ACCC commenced proceedings in September 2025 against Perfection Fresh, Hydro Produce, Veli Velisha Fresh Produce and Velisha National Farms, and M. Fragapane & Sons, together with three executives.

Proceedings against the remaining respondents continue. ALDI is not accused of participating in the cartel.

### Why $12 million?

The proposed penalty covers nine contraventions and one attempted contravention. One additional admitted contravention falls outside the applicable penalty period.

Perfection Fresh has also agreed to continue implementing a competition-law compliance program, subject to the Court's orders.

### Did shoppers pay more?

That remains unquantified. The ACCC has not established how much the arrangements increased ALDI's wholesale prices or whether higher costs were passed through to shoppers.

But the case illustrates an important distinction in Australia's grocery competition debate.

**Anti-competitive behaviour can occur between suppliers, not just between supermarkets. Stronger retail competition depends partly on genuine competition throughout the supply chain.**

Inside the ALDI vegetable price-fixing case

ACCC enforcement update | 26 October 2026

| 11Admitted occasions | $12mProposed court penalty | 3Vegetables in admitted conduct |
| -------------------- | -------------------------- | ------------------------------- |

ADMITTED: 2019–2020, NSW

Broccoli | Cauliflower | Iceberg lettuce

How weekly competition should work

| **Supplier A**Independent quote | **Supplier B**Independent quote | **Supplier C**Independent quote |
| ------------------------------- | ------------------------------- | ------------------------------- |

↓ ↓ ↓

ALDI receives competing weekly prices

Its agile system gives it alternative supply offers.

What price fixing changes

Competing suppliers coordinate instead of independently determining their offers. The resulting effect on ALDI's prices has not been quantified.

Wider ACCC allegations: 2018–2024

Three states, six vegetables and multiple respondents

| 28Alleged arrangements or attempts to fix prices | 48Alleged price submissions consistent with arrangements |
| ------------------------------------------------ | -------------------------------------------------------- |

These figures concern the broader case; they are not 28 or 48 admissions by Perfection Fresh. Proceedings against the other respondents remain ongoing.

What happens next?

The Federal Court will decide whether to impose the jointly proposed $12 million penalty and related compliance orders. ALDI is not accused of participating in the cartel.

Sources: Australian Competition and Consumer Commission, media releases of 1 September 2025 and 26 October 2026\. www.accc.gov.au